4/17/2014

This post was an initial attempt to find “cheap but good” stocks
that recorded positive YOY revenue change, net asset cheap, below 20 million in
market capitalization with stock price under performance versus the market. There are more solid ideas under 20 million but the following
ideas should get deep value nano cap investors something to look at or
investors looking to hedge risk. I expect to more fully explore value based nano
caps in future posts. Oops ... just noticed FSI does not have YOY positive revenue change.

TSR, Inc. (TSRI):provides contract computer programming services to commercial
customers primarily in the New York metropolitan area, New England, and the
Mid-Atlantic region. Services include technical staff on short-term or
long-term basis. The company serves Fortune 1000 companies, founded in 1969.

FlexibleSolutions International Inc. (FSI):environmental
technology company involved in research, development and manufacturing of
products that increase crop yield, improve oil and gas operations, reduce the
environmental footprint in cleaning and water treatment, save water and save
energy. Source Corporate Website

FSI offers HEATSAVR, a chemical product for
use in swimming pools and spas that forms a thin and transparent layer on the
water surface; ECOSAVR, a disposable dispenser designed for the residential
pool and spa market; and WATERSAVR to reduce water evaporation in reservoirs,
potable water storage tanks, livestock watering ponds, aqueducts, canals, and
irrigation ditches, as well as for lawn and turf care, and potted and bedding
plants. The company also offers WATERSAVRBTI that combines evaporation control
with an environmentally friendly method of killing mosquito larvae. In
addition, it provides thermal polyaspartate biopolymers for oil fields to
reduce scale and corrosion in various water systems; for the agricultural
industry to reduce fertilizer crystallization before, during, and after
application, as well as to prevent crystal formation between fertilizer and
minerals present in the soil; for irrigation to prevent early plugging of drip
irrigation ports, reduce maintenance costs, and lengthen the life of equipment;
for detergents as a biodegradable substitute for poly-acrylic acid; and for use
in personal care products, such as shampoo and cosmetic products. Flexible
Solutions International Inc. was founded in 1991 and is headquartered in
Victoria, Canada. Source Yahoo

Real estate owned…56,780 sq. ft. facility in Peru,
Illinois used to manufacture TPA line of products as well as a building and 3.3
acres of land in Taber, Alberta, Canada.

Market Cap: 9.14M , Enterprise Value: 12.27M

Trailing P/E:5.03

Price/Sales: 0.55 , Price/Book: 0.76

Enterprise Value/Revenue 0.78 ,Enterprise Value/EBITDA: 18.90

Profit Margin (ttm):11.53% , Return on Equity (ttm): 17.15%

Qtrly Revenue Growth (yoy): -10.80%

Gross Profit: 4.53M , Book Value Per Share: 0.87

52-Week Change:-28.45%

Shares Outstanding:13.17M , Float: 6.85M

% Held by Insiders: 47.93% , % Held by Institutions: 12.30%

April 11, 2014: "Sales were lower in Q1, 2014 than in Q1, 2013. Flexible Solutions’ top line revenue decreased from $4.50 million (Q1, ‘13) to $3.81 million (Q1, ‘14), down 15% year over year.The exceptional cold weather during the quarter reduced uptake by certain agricultural customers. We expect sales in Q2 will recover some of those missed in Q1."

Forward Industries Inc. (FORD):Forward Industries designs, markets, and distributes carry and
protective solutions primarily for hand held electronic devices. The company
offers carrying cases and other accessories for medical monitoring and
diagnostic kits; and other portable electronic and non-electronic products,
such as sporting and recreational products, bar code scanners, smartphones, GPS
and location devices, tablets, and firearms. It also designs, markets, and
distributes carry and protective solutions for hand held electronics devices,
including soft-sided carrying cases, bags, clips, hand straps, protective
plates, and other accessories made of leather, nylon, vinyl, plastic, PVC, and
other synthetic materials. The company was founded in 1954 and is headquartered
in West Palm Beach, Florida. Source Yahoo

Why to consider on a watch list…. Tiny
profitable nano cap with strong financial position, 33% held by insiders (Yahoo
source). No long term debt with cash per
of share .80, GP per share .79, 52 Change -15.82%,Qtrly revenue growth
(yoy): 20.70%

Data per Yahoo 04/18/14:

Market Cap: 13.52M, Enterprise Value: 7.28M

Enterprise Value/Revenue:0.23 ,Price/Sales:0.42,
Price/Book: 1.38

Enterprise Value/EBITDA: 6.04 , Return on Assets: 4.76%

Qtrly Revenue Growth (yoy): 20.70% ,Gross Profit : 6.38M

EBITDA : 1.21M

Total Cash: 6.57M ,Total Cash Per Share : 0.80

Total Debt : 0.00 , Current Ratio (mrq): 3.07

Book Value Per Share:
1.19

52-Week Change: -15.82%

52-Week High: 2.14 , 52-Week Low: 1.41

Shares Outstanding: 8.20M , Float: 5.83M

% Held by Insiders:
33.08% , % Held by Institutions:
13.40%

Command Security Corp. (MOC):“provides uniformed security officers and aviation security
services to commercial, financial, industrial, aviation, and governmental
customers in the United States. The company offers its security services to
customers through Security division and Aviation Safeguards division. Its
Security division provides armed and unarmed uniformed security personnel for
access control, loss prevention, mobile patrols, traffic control, security
console/system operators, and fire safety directors, as well as offers
personnel for reception, concierge, and front desk/doorman operations. This
division serves governmental, quasi-governmental and financial institutions,
healthcare facilities, colleges and universities, residential communities,
commercial real estate, industrial, distribution, logistics, and retail
customers. The company’s Aviation Safeguards division provides a range of uniformed
services for domestic and international air carriers, including security for
airlines, aircraft, passengers, and cargo; and baggage screening, wheelchair
escort services, special escort services, and skycap services. This division
serves 100 domestic and international airlines, airports, airport authorities,
and the general aviation community at approximately 20 international airports
and 5 regional airports. It also offers administrative services, such as
billing, and collection and payroll services for police departments. Command
Security Corporation was founded in 1980 and is headquartered in Herndon,
Virginia.” Source Yahoo Finance

“Taitron Components Incorporated operates as
a distributor of brand name electronic components, and supplier of original
designed and manufactured (ODM) electronic components. The company distributes
discrete semiconductors, including transistors, diodes, rectifiers, and
bridges; optoelectronic devices, such as LEDs, infrared sensors, and opto
couplers; and passive components consisting of resistors, capacitors, and
inductors. The company also provides ODM components, which are manufactured
electronic components based on its own engineering specifications under the TCI
private label brand through manufacturing partners. In addition, it offers
value-added engineering and turn-key services focusing on providing contract
electronic manufacturers (CEMs) and original equipment manufacturers (OEMs)
with ODM services for their turn-key projects. The company serves smaller and
medium-sized distributors, CEMs, and OEMs. It operates in the United States,
Mexico, Brazil, Taiwan, China, Canada, and internationally. Taitron Components
Incorporated has strategic alliances with Teamforce Co. Ltd.; Grand Shine
Management Limited; and Zowie Technology Corporation. The company was founded
in 1989 and is headquartered in Valencia, California.” Source Yahoo

Surge Components Inc. (SPRS):* Note Dual class ownersip, although appears to have the best price versus intrinsic value of all 7 stocks. “Founded in November 1981, Surge Components
has grown into a world class supplier of Capacitors and Discrete
Semiconductors. Surge’s capacitor product portfolio includes Aluminum
Electrolytic Capacitors, Film Capacitors, and Ceramic Capacitors. In the
Discrete Semiconductor portfolio, the company’s strengths include General
Purpose, Recovery, Schottky, and Transient Voltage Suppressor diodes, and
a full line of Bridge Rectifiers.” Corporate websiteCurrent price = .75

i agree that SPRS very interesting, no position. No obvious moat moat. The capital structure needs to be looked at more closely, ie more than on class of stock. Hummingbird used to own the stock (sprs) before Sonkin liquidated the fund. John